ECON1203: StatisticsChapter 3: Graphical descriptive techniques II

ECON1203: Statistics
Chapter 3: Graphical descriptive
techniques II
1. Graphical techniques to describe a set of
interval data
Factors that identify when to use a histogram, stem-and-leaf display or
ogive
1. Objective: Describe a single set of data.
2. Data type: interval

a. Histogram
A histogram is a graph with rectangles whose bases are the intervals and
whose heights are the frequencies.

Classes are a series of intervals that cover a complete range of

observations.

Sturges ' formula : Number of class intervals=1+ 3.3 log ( n )

[wheren=number of observations]
Class width=

Largest observationSmallest observation

Number of classes

A symmetric histogram has the same shape and size around a line
drawn down the centre.
A positively-skewed histogram has a long tail extending to the right.
A negatively-skewed histogram has a long tail extending to the left.
A modal class is the class with the largest number of observations.
A unimodal histogram is one with a single peak.
A bimodal histogram is one with two peaks, not necessarily equal in
height.
A bell-shaped histogram is a symmetric, unimodal histogram.

b. Stem-and-leaf display
A stem-and-leaf display splits each observation into a stem (e.g. the 10s unit)
and a leaf (e.g. the 1s unit).

ECON1203: StatisticsChapter 3: Graphical descriptive techniques II

A histogram sacrifices information about actual observations whereas a

stem-and-leaf display shows the actual observations.

c. Ogive
An ogive is a graphical representation of the cumulative relative frequencies.

A frequency distribution lists the number of observations that fall into

each class interval.
A relative frequency distribution divides the frequencies by the
number of observations.
A cumulative relative frequency distribution shows the proportion of
observations that lie below each class limit.

2. Describing time-series data

Time-series data may be interval or nominal.

Cross-sectional data are measured at the same time.

Time-series data are measured at successive points in time.
A line chart is a plot of a variable over time. It is often used to depict
time-series data.

3. Describing the relationship between two

interval variables
A scatter diagram shows how two interval variables are related.

The independent variable is labelled X.

The dependent variable is labelled Y.

Factors that identify when to use a scatter diagram

1. Objective: Describe the relationship between two variables.
2. Data type: Interval
A linear relationship exists if most of the points fall close to a line: 1

A positive linear relationship exists if one variable increases when the

other does.
A negative linear relationship exists if two variables tend to move in
opposite directions.

1 Note that correlation is not causation.

ECON1203: StatisticsChapter 3: Graphical descriptive techniques II

4. Graphical excellence
Graphical excellence occurs if techniques are informative, concise and convey
information clearly:
1.
2.
3.
4.

Data is presented concisely and coherently.

The ideas the statistics practitioner wants to convey are clear.
The graph encourages the viewer to compare two or more variables.
The data is truthful and not distorted.

5. Graphical deception
Examples of graphical deception include:

Graphs without scale

Graphs with different captions
Graphs using absolute changes rather than percentage changes
Stretching or shrinking the axes (an expanded scale is usually
accommodated by a break in, or truncation of, the vertical axis)
Bar charts with widths that are proportional to heights